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Formatting prepares a drive to accept new data. This involves wiping the whole drive (or partition) and all the information on it.

Delete, just removes the index to where a particular file was actually stored on the disk. It's a bit like, instead of tearing a page out of a book, you just cross out the index that refers to that page. That's how Undelete programs can find the file again.

The old data however, can be overwritten, by new stuff being stored and thus losing the data forever.

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